Carte Blanche

Sudan has offered India a surprising free run of its economy — although there is a quid pro quo attached, reports VIJAY SIMHA

IT’S AFRICA’S largest nation, and it is opening its doors to Indian brains and money. After the International Criminal Court (ICC) prosecutor sought an arrest warrant for Sudanese President Omar Hassan Ahmad Al-Bashir in July this year, the Sudanese Government sent a six-member delegation with an offer they felt India couldn’t refuse — practically offering India a free hand to run vast areas of Sudan’s economy.

The Sudanese delegation led by Minister for Finance and National Economy Awad Ahmed Al-Jaz was in New Delhi between October 28 and October 30. He met four ministers — Pranab Mukherjee (External Affairs), P Chidambaram (Fin - ance), Lalu Prasad (Railways) and Murli Deora (Petroleum and Natural Gas).

The reason for the economic open season is simple: Sudan believes that India has global clout, especially with the US after the civilian nuclear deal between the two countries. Sudan could use a little of that influence, considering that the international community seems to be acting against the Sudanese president for alleged crimes during the conflict in Darfur.

The ICC, an independent, permanent court based on a treaty joined by 108 countries, has indicted Al-Bashir on 10 counts of war crimes and genocide in Darfur. The ICC has its headquarters in The Hague and tries persons accused of serious crimes like genocide, crimes against humanity, and war crimes. Neither India nor Sudan is a signatory to the treaty that established the ICC.

The ICC describes itself as a court of last resort. It will not act if a case is being investigated or prosecuted by a national judicial system, unless it agrees that the investigation is not genuine. For instance, one possibility is if formal proceedings were undertaken solely to shield a person from criminal responsibility.

The Darfur conflict broke out in 2003 between Sudanese forces and the militia friendly to them on one side, and rebel groups on the other. A United Nations factsheet says that more than 200,000 people have been killed and about two million displaced from Darfur, and the conflict has given Sudan the reputation of being unstable.

On October 30, the Indian Ministry of External Affairs issued a statement saying that Al-Jaz handed over a letter from Al-Bashir, addressed to Prime Minister Manmohan Singh. The letter is understood to have said that Al-Bashir was innocent and was being framed by western powers.

On the ICC’swarrant against Al-Bashir, the Indian statement said, “As regards matters pertaining to moves within the ICC with regard to Sudan, it was highlighted that India is neither a signatory to nor has it ratified the instrument establishing the said body.” The statement also said any action that might detract from ongoing efforts to reach an early resolution of the Darfur conflict might have undesirable consequences.

What the statement did not share was the bounty offered by Al-Jaz. “We are calling Indian investors because some of our industry needs to be rehabilitated,” Al-Jaz said.

Sudan said Indian businessmen can mine its gold, lay its railway tracks, build its roads, sell machines and medicines — and take the money home. For this, the Sudanese Embassy in New Delhi has been instructed to make things easy for Indians. “We are asking our embassy in India to take care of every man and woman who wants to come to Sudan. We look forward to seeing more Indians in our country,” Al-Jaz said.

The Sudanese delegation, which included the Governor of Khartoum, Abdel-Haleem Al- Muta’fi, virtually asked India to build Sudan’s railway and set up paper, sugar, and food processing industries. For instance, Sudan has home-grown mangoes and tomatoes, but would like Indian help in establishing units to process them. Likewise, Sudan imports all of its paper, including news print, and wants to establish a paper industry. Sudan also wants to expand its sugar industry and plans to set up five new sugar factories. India is the second-biggest manufacturer of sugar and Sudan has offered contracts both in producing sugar as well as for the extraction of ethanol from sugar.

However, if Indian companies set up shop in Sudan, they will want to secure their earnings. So, Sudan has even offered opportunities to Indian banks.

Meanwhile, Al-Muta’fi addressed the issue of safety. “Sudan is one of the safest parts of the world. Just like the Kashmir conflict does not affect life in the rest of India, so too Darfur does not affect life in other parts of Sudan,” he pointed out.

India and Sudan have diplomatic ties that are 53 years old. The economic equation between the two countries has been getting better, with Indian exports to Sudan touching $317.84 million in 2005, and imports reaching $307.77 million the same year. India has recently offered concessional credit worth $800 million in many sectors.

Should these economic ties be extended — in the manner that Sudan would now like — the resultant surge in business could offer Indian companies bigtime access to both Sudan as well as large markets in countries such as Egypt, Kenya, Uganda, and the Gulf countries. It could be a win-win situation for Indian companies seeking global markets.

But the future of economic cooperation with the Sudanese lion presupposes that first, Indian companies will bite the big buck offer, and second, India and the Sudan government talk the talk on the small matter of diplomacy and the charges at the ICC.